Minnesota will allow banks and credit unions to offer crypto custody services starting August 1.

CoinFeed reported on May 19th, citing CoinDesk, that Minnesota Governor Tim Walz signed a virtual currency bill allowing state-chartered banks and credit unions to offer regulated crypto custody services starting August 1st. The bill clarifies digital asset custody rules, requiring the segregation of client assets from institutional assets and mandating the submission of risk management and cybersecurity plans to the state commissioner of commerce 60 days in advance. Minnesota is the first Midwestern state to establish a unified digital asset security network for banks and credit unions. Simultaneously, the state signed another bill banning crypto ATMs statewide starting August 1st, with legislators stating these machines have become tools for fraudsters targeting vulnerable groups.